Trump’s Busy Year On Energy And Environment

ByAlisa Barba |December 22, 2017

President Trump campaigned on a platform to make American energy great again.

“We’re loaded,” he said, at a 2016 campaign appearance in North Dakota, referring to fossil fuel reserves. By unleashing those reserves and slashing regulations, Trump promised, he would usher in an era of “energy independence” and, ultimately, American energy dominance.

Other than the massive tax reform bill in Congress, Trump’s legislative victories have so far been few and far between. On energy and environment, however, Trump is slowly making headway, with help from a trio of powerful and like-minded cabinet members.

The head of the Environmental Protection Agency, Scott Pruitt, has erased climate change from agency priorities and is filling the ranks of political appointees with people who have previously lobbied against a slew of environmental regulations.

Finally, at the Interior Department, Secretary Ryan Zinke is shrinking national monuments while opening up more federal lands to drilling and mining.

An executive order in March ordered a review of all actions that could hinder the development and exploitation of energy resources. The order immediately revoked a host of Obama administration efforts to prepare and protect the country from the impacts of climate change.

In compliance with that executive order, EPA Administrator Scott Pruitt announced in October that he would repeal the Clean Power Plan, which aimed to cut carbon emissions from power plants. The EPA is considering whether to issue a more limited plan to deal with power plant emissions.

President Trump announced the U.S. will withdraw from the Paris Climate Accord. While actual withdrawal may take years, the move signaled a U.S. retreat from climate leadership and other major powers, including China and France, have stepped in to try and fill it.

The president’s executive order on “Promoting Energy Independence and Economic Growth” called for promoting “clean and safe” development of energy resources while “avoiding regulatory burdens that unnecessarily encumber energy production.” Here are a few things that have been done that aim to accomplish those goals:

Ordered a review of a plan developed by western states to keep the greater sage grouse off the endangered species list. That could likely open up more land to energy development.

Sped up the permitting process and increased the number of lease sales for oil and gas drilling on federal land.

Delayed implementation (with the intention of rewriting) of an Obama administration rule that sought to limit methane leaks from oil and gas drilling on federal land.

Overturned an effort to reform how royalties were calculated for oil, gas and coal on federal lands.

Revoked a moratorium on new coal leases on public lands.

Recommended shrinking four national monuments and revising management plans for a half dozen more. In December, Trump announced he would dramatically shrink Bear’s Ears National Monument and Grand Staircase-Escalante — both in Utah. Removing monument protections from these lands would allow energy development, such as coal or uranium mining to continue, and possibly expand. Zinke also recommended shrinking two more national monuments and revising management plans for a half dozen more.

Long-term impact?

When President Trump was first elected, few energy analysts believed he could bring back the coal industry, or reverse the momentum of renewable energy. But, coal’s fortunes have improved this past year due to a stronger export market, and the effort to repeal the Clean Power Plan. Still, experts foresee a long-term decline. Coal-fired electricity plants are too expensive compared to natural gas, and are continuing to shut down despite full-throated support from the administration. Lifting the moratorium on new coal leases on federal land has not resulted in a single new coal lease in Wyoming, according to Travis Deti, head of the Wyoming Mining Association.

Likewise, at least some oil and gas lease sales on federal land have been met with a tepid response from industry. In December, only seven bids were received for parcels on over 10 million acres offered in the National Petroleum Reserve in Alaska, less than one percent of the acreage for sale. Similarly, a lease sale in Utah for 94,000 acres left 40,000 acres without an acceptable minimum bid.

Still, while renewable energy such as solar and wind continues to expand, some things suggest challenges ahead:

After five years of tremendous growth, solar installations in 2017 are expected to be down 22 percent from the previous year. The slowdown is in part due to regulatory uncertainty under the Trump administration. In early 2018, Trump is set to announce his decision on whether to impose stiff trade protections on the import of cheap solar panels from Asia. The solar industry fears this could dramatically hurt growth.

Rick Perry’s coal and nuclear subsidy proposal would give those sources a financial boost in wholesale markets. The proposal is still under review at the Federal Energy Regulatory Commission but, if approved, it could keep coal alive while spelling trouble for the renewable industry.

Alisa Barba is the Executive Editor of Inside Energy, a public media collaboration focused on America’s energy issues.

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